Urban One Q2 2024 Earnings Report
Key Takeaways
Urban One, Inc. reported a decrease in net revenues for the second quarter of 2024, with a significant shift from operating income to an operating loss. The company experienced a net loss, contrasting with a net income in the prior year. Declines in cable television and digital revenues significantly impacted the overall financial performance.
Net revenues decreased by 9.2% compared to the same period in 2023.
The company reported an operating loss of $60.4 million, a stark contrast to the $9.7 million operating income in the prior year.
Net loss was $45.4 million, or $(0.94) per share, compared to a net income of $70.4 million, or $1.48 per share, in the same period last year.
Adjusted EBITDA decreased to $28.4 million from $37.5 million in the prior year.
Urban One
Urban One
Forward Guidance
Urban One anticipates a significant increase in political advertising revenues for the remainder of the year, which should benefit both radio and digital divisions. The company is also seeing a bounce-back in ratings and delivery in Q3 for its Cable TV business. However, the Cable TV business continues to suffer from subscriber churn and audience delivery shortfall.
Positive Outlook
- Significant uptick in political advertising revenues expected.
- Optimistic outlook for radio and digital divisions due to political advertising.
- Bounce-back in ratings and delivery in Q3 for Cable TV.
- Sequential improvement in national revenues vs. Q1 in the radio division.
- Digital business remains well-positioned for the second half of the year, particularly with political and CTV advertising.
Challenges Ahead
- Cable TV business continues to suffer from subscriber churn.
- Cable TV business continues to suffer from audience delivery shortfall.
- Weaker local revenues offset improvements in national revenues.
- Q3 core radio revenue is currently pacing down 6.9% on a same station basis.
- Digital business experienced weaker advertising demand than the prior year.